Elusive effects of unemployment on happiness
AbstractThis paper explores the connection between unemployment and subjective well-being in Finland by using cross-sections for the years 1990, 1996 and 2000 from World Values Surveys. An unprecedented increase in the national unemployment rate (from 3 to 17 per cent) did not produce a drop in the mean level of subjective well-being. Experiencing unemployment personally reduces life satisfaction, but does not have a significant effect on happiness in ordered logit estimation. However, generalized ordered logit estimation reveals that being unemployed has a negative effect on happiness at lower happiness scores, but no significant effect at high happiness levels.
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Bibliographic InfoPaper provided by EconWPA in its series Labor and Demography with number 0504008.
Length: 16 pages
Date of creation: 19 Apr 2005
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happiness; unhappiness; life satisfaction; unemployment;
Other versions of this item:
- C30 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - General
- J28 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Safety; Job Satisfaction; Related Public Policy
- J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
This paper has been announced in the following NEP Reports:
- NEP-ALL-2005-04-24 (All new papers)
- NEP-CBE-2005-04-24 (Cognitive & Behavioural Economics)
- NEP-DCM-2005-04-24 (Discrete Choice Models)
- NEP-LAB-2005-04-24 (Labour Economics)
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